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partly on application, partly on allotment, partly on call). 10, it is said that the share has been issued at par. 15; such a condition of issue is known as issue of shares at premium.Issue of shares at par: Shares are said to be issued at par when they are issued at a price equal to the face value. Issue of shares at premium: When shares are issued at an amount more than the face value of share, they are said to be issued at premium. The difference between the issue price and the face value [i.e. 5 (Rs.15 – Rs.10)] of the shares is called premium.Now if any shareholder fails to pay the allotment and or call money due to him, the shareholder violates the contract and the company is entitled to take its share back, which is known as forfeiture of shares.

It also includes the opening date and the closing date of the issue, amount payable with application, at the time of allotment and on calls, name of the bank in which the application money will be deposited, minimum number of shares for which application will be accepted, etc.Decision to allot the share is taken by the Board of Directors in consultation with the stock exchange.After the closure of the subscription list, the bank sends all applications to the company.The amount of premium depends upon the profitability and demand of shares of such company.Note: The Company may collect the amount of security premium in lump sum or in instalments.

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The directors after passing a resolution will forfeit the shares and information will be given to the defaulting shareholder about the forfeiture his shares. Termination of membership: The membership of the defaulting will be terminated and they lose all the rights and interest on those shares i.e.